What BFCSA Does...

BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide. Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years. For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams. She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.

Cartoon Corner

Denise Brailey

Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned about the appalling growth of Loan Fraud around the world. BFCSA (Inc) is a not for profit organisation in the spirit of global community concern and justice.

The Australian Treasury has inadvertently admitted, in a letter to the Citizens Electoral Council, the deadly threat facing Australia’s banking system from a crash of the property bubble.

This admission is a scandal, because publicly Treasury denies there is a property bubble, so it can deny the threat, and not take any action against the banking practices that are inflating the bubble.

Ironically, Treasury official Meghan Quinn let slip the admission whilst trying to argue in her 14 April letter against the CEC’s call for a Glass-Steagall separation of commercial (retail) banking from investment banking.

Quinn cited the banking crashes in Ireland, Spain and the UK as proof that commercial banking can have the same or even more risk as investment banking:

“Further, risks to financial stability as a result of poor practices in retail and commercial banking can be just as large, if not larger, as those posed by investment banking,” she wrote. “Many of the bank failures in Ireland, Spain and the UK resulted from losses on retail and commercial banking assets rather than from trading activities.” [Emphasis added.]

Exactly! But why? In all three cases, the banking systems crashed because they were heavily exposed to property bubbles—just like the banks in Australia!

Australia’s Big Four banks have a greater market dominance—80 per cent—than the four biggest banks in any other country in the world, and the same banks have a far greater exposure to the property market—60+ per cent of their business—than any other banks in the world;

median house prices are now higher in Australia than they were in those countries when their bubbles burst—median prices in Melbourne and Sydney are 8-9 times annual income, second only to the extreme case of Hongkong, and well above the historical average of 3-4 times;

the ratio of Australian household debt to income is at an all-time record of 177 per cent (compared to 60 per cent in 1990), which means that Australians are stretched to the limit of their capacity to service their debt—spelling doom for the property bubble.

Quinn’s letter proves that Treasury knows the threat facing Australia, so why does it publicly deny it, and refuse to act on it?

Treasury is failing in its duty to the public. It is protecting the banks’ reckless gambling on mortgages, which is not just making housing completely unaffordable, it is putting the entire economy in danger, so the banks can inflate their short-term profits.

From Joe Hockey down, the people who run Treasury are too cosy with the banks they are meant to police; too many bankers are at Treasury, and too many Treasury people go to work for banks.

Glass-Steagall is the only solution, because it is the only way to separate real banking from financial gambling.

ED: The evidence of Loan Application Fraud coupled with the Service Calculator Scandal we have presented to Parliament and to ASIC for over a decade......................is over-whelming. Joe still trying to hit on pensioners instead of the Bankers that engineered this monstrous fiscal tsunami.

Comments

doyla66
Thursday, 24 April 2014

Duped

It's time for Joe Hockey to wake up and smell the roses, instead of being buddy buddy with the banks, wake up, the banks are the problem. How many times do people and organisations have to tell you, you are being done over by the evil banking cartel and you are either too stupid or you financially have something to lose by not listening. Go after the banks not the pensioners, politically you would have a far bigger following and be far more popular.